#moneyconversationmonday

“I stumbled on this photograph, it kinda made me laugh. It took me way back, back down memory lane. I see the happiness, I see the pain. Where am I? Back down Memory Lane” – Minnie Rippleton

Everyone has heard of the three major credit reporting agencies: Experian, TransUnion, and Equifax better known as the infamous credit bureaus. They are responsible for stalking you, I mean, keeping track of consumer spending and repayment history. Prior to their existence, a consumer could default on their financial obligation and easily go to another financial institution and obtain financing.

Most people are under the false impression that credit bureaus are operated by the government. Well, I hate to break your heart, but that is not true. All three bureaus analyze consumer credit in the US and each one of these agencies has its own proprietary method for doing so.

“Here I am, I’m still standing. Here I am, after all I’ve been through. I survived every toil and every snare…” Pastor Marvin Sapp

According to the Administrative Office of the U.S. Courts, in 2005, approximately 1.6 million people filed Chapter 7 bankruptcy. Unfortunately, I am one of the individuals included in that 1.6 million.

I was the designated fool amongst my family and “so-called” friends. My poor judgment caused me to co-sign for family and friends that didn’t like to pay their bills on time or not at all. I also accumulated a lot of debt on my own trying to get ahead in life.

Obtaining credit after bankruptcy is difficult. You will likely end up paying higher interest rates and could be targeted by unscrupulous lenders who believe that desperation makes you an easy target.

Regardless of your situation, your goal after filing bankruptcy should be to establish a good credit history. Here are 5 simple things you can do to start re-establishing good credit.

“What I need from you is understanding, so simple as 1, 2, 3… Understanding is what I need” – Xscape

The majority of people understand the basics. However, there are a number of complexities that could affect the average consumers credit. If you pay your debts on time, don’t carry a high balance on your credit card(s), don’t close older accounts unless absolutely necessary and only apply for new credit when necessary, you will be in good shape.

Your credit report indicates your ability to handle debt responsibly and will help lenders decide if you are a desirable customer. A high credit score can help you obtain low APR rates or secure special deals on loans. A low credit score may prevent you from securing loans and can hinder your ability to open a credit card, rent an apartment or even get a job. A history of inability to manage your debts successfully will make lenders uncomfortable about trusting you.

Do you know who is looking at your credit report? Do you know your credit score? The answer to these questions may surprise you.

There are some people that want you to believe that a credit score is not important. It may not be essential in everyone’s life, but having a good credit score will save you a lot of money, and may influence more things than you realize.

You have been entered into the raffle. Be sure to check your email tomorrow because you will get an email that will tell you all about me and how I can serve you better in your business so be sure to open me when you see me in your inbox :) See you tomorrow!

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